Fulcrum Point
Definition of 'Fulcrum Point'The turning point in which a security or the economy in general makes a major change in direction. A fulcrum point can be very profitable for investors who are able to identify that a sharp price move is about to take place. For example, after the U.S. equity markets plunged in late 2008, they recovered sharply in early 2009. |
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Investopedia explains 'Fulcrum Point'It is very difficult to predict or identify a fulcrum point contemporaneously, but the promise of very high returns keeps many investors looking for them. Unfortunately, these movements are so rare that few succeed in both predicting that a movement should occur and in timing the movement correctly. Often, what may seem initially to be a major sharp reversal may instead turn out to be just a minor movement before the major trend resumes. |
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